Additional Investments in Defense by the Dutch Government Lead to Business Opportunities

This week, the Dutch Ministry of Defense (MOD) published a new whitepaper on forthcoming defense expenditures. The whitepaper, outlining the investments in the years to come, presents an integrated rise of €1.5 billion allocated annually for the military. Dutch IGP Partner GKSV has analyzed and interpreted the ministry’s plans.

With the announcement of an annual increase in the MOD budget, we want to emphasize opportunities for companies in the defense sector in the Netherlands and for foreign business.

Specifically, we distinguish three areas of opportunity:

  • The Dutch MOD is more lenient with regards to procurement by third country parties (countries outside the EU) and is committed to creating a level playing field in Europe.
  • We perceive a broad consensus amongst political and societal stakeholders regarding the necessity to increase in investments in defense capabilities.
  • Most stakeholders agree that the €1.5 billion is just enough to cover the “basics,” additional investments required in the near future are a real possibility.

Brief Analysis

After the end of the cold war, defense was the favorite target for austerity measures in Dutch politics. The sole purpose for Dutch armed forces was the so-called expeditionary missions – bringing peace and stability abroad. This was part of the Dutch 3D approach: development, diplomacy, and defense.

Terrorist attacks, hybrid warfare, and unexpected migration flows from the ring of instability surrounding the EU changed the dynamics and risks around security, not only between countries but also in countries. This new dynamic will not abate, and has shifted thinking in Dutch society, leading to a call for more investment in the MOD.

Read our full analysis to get an overview of all the business opportunities and more here.

We would also love to discuss the content and implications of the whitepaper more in-depth. Please feel free to contact GKSV:

Mark van den Anker (partner at GKSV),vandenanker@gksv.nl / +316 15 05 70 11
Maaike Hellingman-van Hooidonk (partner at GKSV), vanhooidonk@gksv.nl / +316 48 78 66 30

Or visit www.gksv.nl/english